Check out the 11-slide pitch deck Fintern, a startup aiming to make loans more affordable with open-banking data, used to raise $11 million


Fintern’s cofounders Gerald Chappell, CEO and Michelle He, COO

  • The London fintech startup Fintern has raised $11 million in Series A funding. 
  • The company wants to make consumer loans cheaper by using open-banking data from customers.
  • Fintern indicated that about 15 million people in the UK were without affordable credit options.

Fintern, a fintech that wants to make personal loans cheaper, has raised $11 million in new funds.

The London startup, which was founded in 2020, targets “near-prime” customers who may have a thin credit history or some adverse elements of their borrowing past, like a small number of missed payments.

Usually, customers are assessed for loans based on a credit score. Fintern uses a mix of open-banking data and artificial intelligence to create what it says is an improved picture of a person’s creditworthiness.

“The consumer credit markets leave a lot of people, somewhere between 10 million to 15 million people in the UK, without access to affordable loans,” Gerald Chappell, Fintern’s CEO, told Insider.

“Bank and nonbank lenders are praised at the credit-score level, but we want to understand people better now that the data is available to open up more low-cost lending,” he added. 

Chappell said credit scores were deeply engrained as a market standard for unsecured personal lending.

Open banking, a regulatory shift that opened the use of application programming interfaces to enable third-party developers to build applications and services on top of financial services, has meant consumers can share their banking data with providers more readily. 

“When I moved to the UK from China 12 years ago to get a well-paid job, it was impossible to borrow because I was ‘credit-invisible,'” Michelle He, Fintern’s cofounder and chief operating officer added. “Even people from the UK can be credit-invisible because of the inertia of credit scoring.” 

Since launching its platform in early 2021, Fintern has worked with about 50,000 customers in the UK and provided personal loans of between £1,000 to £7,500 ($1,350 to $10,000) for a duration of one to three years.

To date, the startup has raised $54 million in debt and equity. The latest $11 million Series A was led by London’s Hambro Perks and was largely equity funding, alongside some mezzanine debt, which will go toward doubling the company’s staff to about 40 by the end of the year.

“Banks will try to catch up in five years’ time, but they are spoiled and don’t think they need to work to get the customers,” Chappell said. “Their cost of credit is close to nothing, and it would be a very lengthy and costly process to implement this amount of change to legacy systems.” 

Fintern hopes to build a £1 billion loan book in the UK over the next five years as it looks to get people out of credit-card or alternate-market debt.

Check out Fintern’s Series A deck below:



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